Contractors Association Forecasts Layoffs
Contractors Association Forecasts Layoffs
John Wolz
As estimated 30% of non-residential construction workers may be laid off this year unless there are “stimulus investments or other improvements in market conditions” the Associated General Contractors of America predicted. Two-thirds of the nation”s non-residential construction companies are planning to layoffs, according to AGC employment and business forecast figures.
The forecast is based on a late 2008 survey conducted by the association late in 2008. AGC reported 92% of building contractors and 93% of road builders experienced slowdowns beginning late last year, resulting in a 10% decline in the number of construction workers since 2006.
The business outlook would improve with the infrastructure projects in the proposed stimulus package. For example, 85% of non-residential construction companies would either cancel layoffs or add new employees if states embarked on stimulus-funded infrastructure projects.
Association CEO Stephen Sandherr added that the groups were proposing the creation of “economic crisis zones” that would, similar to natural disaster zones, provide tax exemptions and private activity bonding authority to finance construction projects in communities experiencing two consecutive months of double-digit unemployment. Web agc.org
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